Intel reports 288 per cent rise in income in first quarter
Published: 14th Apr 2010 14:00:00
American chipmaker and industry leader Intel has revealed a record 288 per cent rise in net income in the first quarter of 2010, raising the hopes of the entire technology sector.
In what the company calls its "best first quarter ever" sales rose 44 per cent to £6.7 billion and Intel achieved net income of £1.6 billion when compared with the same period in 2009.
Many firms delayed purchasing new chips for computer servers during the recession and in the three months to March sales nearly quadrupled.
Intel's strong results suggest corporate demand for technological products could be returning, as companies replace ageing PCs, the company's chief executive officer Paul Otellini said.
Intel chief financial officer Stacy Smith expressed surprise with what he called "better than expected financials," adding that "the strength of our business surprised us".
He added: "You're starting to see some corporate PC purchases reemerge, [but] I'm still not going to go out on a limb - and our customers certainly aren't going to go out on a limb - and say that there's a corporate refresh 'snapback' coming."
Analysts hope Intel's strong results will help to revive the flailing industry. Its earnings, which are closely watched by investors as a bellwether for the technology sector, came in ahead of analysts' expectations.
Intel is the first major technology company to report its first quarter results. Following this announcement, Intel shares were up 3.6 per cent in extended trading in New York. Microsoft shares climbed 43 cents and Texas Instruments gained 68 cents.
The company, which has offices in Swindon, said it expects to hire about 1,000 people worldwide this year. Last year Intel reduced its workforce from 82,500 to 79,900.
Bill Kreher, analyst at Edward Jones, said: "It appears the company has successfully navigated through the recession and is clearly emerging stronger from the downturn."
Worldwide information technology spending is expected to rise more than five per cent in 2010, after falling one per cent in 2009, according to market research firm Gartner.
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Harvard CitationUK Wired, 2010. Intel reports 288 per cent rise in income in first quarter [Online] (Updated 14th Apr 2010)
Available at: http://www.ukwirednews.com/news/51766/Intel-reports-288-per-cent-rise-in-income-in-first-quarter [Accessed 23rd Jul 2014]
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